Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are pulling back this week amid weaker soybean and soymeal prices and seasonal increases in DDGS output. Ethanol plants “have turned into sellers coming out of spring [maintenance] shutdowns” and are becoming aggressive on offers. At the same time, merchandisers note that buyers likely “double bought” their near-term needs amid the recent logistics challenges and are pausing while they take delivery.
FOB ethanol plant DDGS prices are down sharply this week and are averaging $297/MT, putting the DDGS/Kansas City soymeal ratio at 0.61, down from last week’s 0.66 and above the three-year average of 0.48. The DDGS/cash corn ratio is down to 0.97 this week, down from 1.06 last week and below the three-year average of 1.06.
On the export market, brokers and exporters report that Barge CIF NOLA values are down $19-22/MT for May through August shipment while FOB Gulf offers are down $20-25/MT. FOB Gulf offers for June averaged $343/MT this week, down $27 from the prior week. Container offers are down as well, though have seen greater support than the FOB market. Offers for 40-foot containers into Southeast Asia are down $16/MT from last week at $443/MT.